Backpacker tax could pass at 15%

THE Federal Government's contentious backpacker tax looks set to pass the Senate at a 15 per cent rate following a deal with the Greens.

Greens Leader Richard Di Natale said his party wanted to give certainty to farmers after 18 months of debate around the rate at which backpackers on working holidays should be taxed.

The Greens deal came with some concessions, including backpacker superannuation payments dropping from 95 to 65 per cent.

But the big winner will be Landcare across the with the Greens securing 100 million dollars in funding.

The breakthrough came after three days of debate threatened to see backpackers taxed at a rate of 32.5 per cent from January 1 when negotiations appeared to stall between Government and cross bench senators.

Earlier in the day the Labor party had conceded it would support a 13 per cent rate, but the Government would not budge from its proposed 15 per cent, which was already a concession from the original 19 per cent rate that was introduced to Parliament in the current sittings.